Trump says an agreement framework has been reached and backs down on Greenland tariffs.
On Wednesday, US President Donald Trump unexpectedly retracted his threats to implement tariffs as a means to acquire Greenland, dismissed the option of using force, and indicated that a resolution to the conflict over the Danish territory, which might jeopardize transatlantic relations, was forthcoming.
During his visit to Davos, Switzerland, Trump temporarily retreated from weeks of rhetoric that destabilized the NATO alliance and threatened a new global trade conflict. Trump threatened over the weekend to implement escalating tariffs on the US-bound products of eight European nations.
Following a meeting with NATO Secretary General Mark Rutte at a Swiss Alpine resort, Donald Trump asserted that Western Arctic allies could negotiate a new agreement regarding the strategically significant island territory of 57,000 inhabitants, which would fulfill his aspirations for a “Golden Dome” missile-defense system and access to essential minerals, while countering the ambitions of Russia and China in the Arctic.
“It is an agreement that satisfies all parties involved,” Trump informed reporters. “It is a protracted agreement.” It represents the quintessential long-term agreement. It places everyone in a favorable position, particularly concerning security and minerals.
“It is an everlasting agreement,” he remarked.
Rutte subsequently stated that the question of Greenland’s continued association with Denmark was not addressed during his discussions with Donald Trump.
“That matter was not raised again during my discussions this evening with the president,” Rutte stated in an appearance on Fox News’ “Special Report with Bret Baier.”
“He (Trump) is highly concentrated on determining the necessary actions to safeguard the vast Arctic region, which is currently undergoing significant changes and where Chinese and Russian activities are increasingly prominent.”
REPROACHING, DERISIVE MENACES
Earlier in the day, Trump delivered over an hour of admonitory and derisive threats directed at nations already unsettled by his efforts to appropriate territory from a longstanding US NATO ally.
European diplomats indicated that the president’s abrupt change in tone does not settle the disagreement but aids in alleviating a visible division among partners as they endeavor to address their issues privately.
The nature of a deal that may satisfy Trump’s demands for complete “ownership” of a land, which its inhabitants and authorities have said is not for sale, remains ambiguous.
A NATO official stated, “Negotiations among Denmark, Greenland, and the United States will proceed to prevent Russia and China from establishing any economic or military presence in Greenland.”
No date or location was specified for the negotiations. Trump stated that he has assigned Vice President JD Vance, Secretary of State Marco Rubio, and ambassador Steve Witkoff to engage in more conversations.
“Events in Greenland hold no significance for us,” stated Russian President Vladimir Putin, as reported by Russian news agencies at a meeting with the National Security Council.
DENMARK STRESSES THE IMPORTANCE OF RESPECTING DANISH SOVEREIGNTY AND GREENLAND.
Trump stated on his Truth Social platform that the U.S. and NATO had established the foundation for a prospective agreement concerning Greenland and the entire Arctic Region, and that “based on this understanding, I will refrain from imposing the tariffs scheduled to take effect on February 1st.”
This was the most recent in a succession of policy reversals or threats by Trump prior to deadlines he established during his second administration.
Denmark asserted that the matter need to be addressed via private diplomacy instead of social media.
Earlier today, the Republican US president recognized the financial markets’ unease regarding his warnings and dismissed the use of force in a speech to global elites at the World Economic Forum annual conference.
“Individuals believed I would resort to coercion, yet I find no necessity for such measures,” Trump stated. I prefer to avoid the use of force. I shall refrain from employing coercion.
The alteration in stance incited purchasing activity on Wall Street. The S&P 500 (.SPX) saw its largest one-day percentage increase in two months, rising by 1.16% for the day. Trump’s more aggressive remarks toward Greenland on Tuesday contributed to the most significant market selloff in three months.
TRUMP OVERSHADOWS DAVOS AGENDA
Trump’s remarks over Greenland overshadowed a tumultuous visit to Davos. Emboldened by a year in office that seen significant institutions and allies acquiescing to his demands, Trump admonished Europeans on their territory about matters such as wind energy, environmental concerns, immigration, and geopolitics.
He portrayed himself as a champion of Western principles. “We seek robust allies, not significantly diminished ones,” Trump stated. “I have a deep affection for Europe and desire its prosperity, yet it is not progressing in a favorable direction.”
Although he eliminated the option of military force regarding Greenland, Trump boasted about U.S. military capabilities, referencing previous actions, like the abrupt removal of Venezuela’s Nicolas Maduro earlier this month.
The Republican US president characterized Denmark as “ungrateful,” minimizing the territorial issue as a “minor request” regarding a “piece of ice,” asserting that such an acquisition would pose no threat to the NATO alliance, which encompasses both Denmark and the United States.
“No nation or coalition of nations is capable of securing Greenland except for the United States,” stated Trump, who erroneously referred to Greenland as Iceland, another NATO member, on four occasions during the speech.
“You may affirm, and we will be exceedingly grateful, or you may decline, and we will take note.”
Trump utilized his speech to address several issues. He criticized Britain for inadequate oil extraction from the North Sea, Switzerland for its trade surplus in products with the US, France for its pharmaceutical policy, Canada for perceived ingratitude, and NATO for its reluctance to align with US objectives.
His comments elicited uneasy expressions and subdued laughs from the crowd in Davos, however the majority remained mute.
His speech significantly failed to address Trump’s primary domestic political challenge: the unfavorable ratings voters assign to his management of cost-of-living concerns.
Despite his advisors having prepared an economic message, Trump addressed his recent attempts to reduce housing costs over an hour into the speech.
Sources acquainted with the matter have informed Reuters that Donald Trump’s interest in Greenland is motivated by a desire to enhance his legacy through the expansion of United States territory, the most significant since Alaska and Hawaii achieved statehood in 1959.
On Thursday, Trump was anticipated to confer with Ukrainian President Volodymyr Zelenskiy. During the trip, Donald Trump sought to garner support from numerous foreign leaders for his Board of Peace program, which aims to address global problems, despite diplomats suggesting it may undermine the efforts of the United Nations.